The company added just 1.7 million new subscribers, significantly below its own forecast of 2.5 million. For the same period last year, Netflix experienced nearly twice that level of subscriber growth with the addition of 3.3 million new subscribers. Netflix reported 6.74 million new subscribers in Q1 of 2016.
On average there are 2.5 viewers for every 1 paid Netflix account, eMarketer says.
Netflix also revealed it had a Q2 revenue of 1.966 billion, below analyst expectations of $2.11 billion but an increase over $1.48 billion revenue in Q2 2015.
“Investors will likely focus on the rest of 2016,” Paul Verna, an analyst at eMarketer, said. “This period should see several important events, including price increases, competition from the Summer Olympics and the launch of a deal with Comcast (CMCSA -0.03%) to be included in the cable giant’s X1 service. At the same time, Netflix will face intense competition from other streaming providers and from emerging channels such as live video streaming on social platforms.”
Netflix is expected to have 126.9 million users in the U.S. by the end of 2016, according to eMarketer. It’s ahead of streaming competitors Amazon (with 73.2 million projected viewers for 2016) and Hulu (67.0 million viewers). However, it still lags far behind YouTube, which is expected to have 176.1 million users this year.
Netflix has recently announced several major deals to beef up its catalog of offerings. Today, the company announced a deal with CBS that allows it to stream all episodes of the new Star Trek series the day after they air on TV. The deal will be available in 188 different countries where Netflix operates; however, it will not be available in the U.S. Earlier this month, Netflix also partnered with The CW to stream hit shows like Jane The Virgin, The Flash, and Supergirl just eight days they air on TV–the shortest turnaround window Netflix has secured on primetime content to date.
In the coming months, Netflix will need to compete with TV coverage of the Olympics for viewer time. Even without the Olympics, U.S. adults spend an average of 4 hours and 5 minutes per day watching traditional television, compared to 1 hour and 8 minutes today watching streaming video.
It will also need to capitalize on its new partnership with Comcast, which will let some Comcast users stream their Netflix account as though it is a regular cable channel.
By: Shelby Carpenter (Forbes).
Photo: Africa News247.
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
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